acrossthespread

Coronavirus Regional Long/Short

Short
AMEX:SPY   SPDR S&P 500 ETF TRUST
Japan ( EWJ ) outperforms as Coronavirus cases are low (due to low testing), but country now on the verge of a massive virus outbreak, in line w/ EU & US.
Italy ( EWI ) lags DM , seen as new epicenter of Coronavirus. Country on lockdown, virus priced in (relative to Japan).

Italy also has sov debt & banking crisis overhang- but Japan also has massive sov debt & banking crisis, just not as widely publicized.

Banking/debt crisis aside, strictly from coming Coronavirus data reaction, RELATIVE pair trade:
Short EWJ (Japan) / Long EWI (Italy)


ETFs are FX hedged to mitigate some of USD vol interference.

Real Vision Exchange Manager